The Descartes Systems Group (NASDAQ:DSGX) Shares Gap Down on Disappointing Earnings

The Descartes Systems Group Inc. (NASDAQ:DSGX - Get Free Report) TSE: DSG shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $115.61, but opened at $100.45. The Descartes Systems Group shares last traded at $106.19, with a volume of 307,892 shares trading hands.

The technology company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.05). The firm had revenue of $168.74 million during the quarter, compared to analysts' expectations of $169.60 million. The Descartes Systems Group had a net margin of 21.80% and a return on equity of 10.65%. The company's quarterly revenue was up 11.5% on a year-over-year basis. During the same quarter last year, the business posted $0.40 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on DSGX shares. Barclays decreased their price objective on shares of The Descartes Systems Group from $118.00 to $108.00 and set an "equal weight" rating for the company in a research note on Thursday. BMO Capital Markets reduced their target price on shares of The Descartes Systems Group from $120.00 to $113.00 and set a "market perform" rating for the company in a research report on Thursday, March 6th. Scotiabank increased their target price on shares of The Descartes Systems Group from $125.00 to $127.00 and gave the company a "sector outperform" rating in a research report on Wednesday, March 26th. CIBC reduced their target price on shares of The Descartes Systems Group from $128.00 to $127.00 and set an "outperform" rating for the company in a research report on Thursday, March 6th. Finally, Wall Street Zen downgraded shares of The Descartes Systems Group from a "buy" rating to a "hold" rating in a research report on Thursday, February 6th. Three investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, The Descartes Systems Group has a consensus rating of "Moderate Buy" and a consensus price target of $123.40.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Mather Group LLC. boosted its holdings in The Descartes Systems Group by 301.7% in the 4th quarter. Mather Group LLC. now owns 241 shares of the technology company's stock worth $27,000 after buying an additional 181 shares during the period. NBC Securities Inc. bought a new position in The Descartes Systems Group in the 1st quarter worth approximately $25,000. GeoWealth Management LLC boosted its holdings in The Descartes Systems Group by 63.2% in the 4th quarter. GeoWealth Management LLC now owns 341 shares of the technology company's stock worth $39,000 after buying an additional 132 shares during the period. SBI Securities Co. Ltd. bought a new position in The Descartes Systems Group in the 4th quarter worth approximately $43,000. Finally, Cullen Frost Bankers Inc. bought a new position in The Descartes Systems Group in the 1st quarter worth approximately $49,000. 77.73% of the stock is owned by institutional investors.

The Descartes Systems Group Stock Performance

The firm has a market capitalization of $8.70 billion, a PE ratio of 63.90 and a beta of 0.88. The company's 50 day simple moving average is $106.94 and its 200-day simple moving average is $110.75.

About The Descartes Systems Group

The Descartes Systems Group Inc provides cloud-based logistics and supply chain management solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company provides a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services.